Why You Should Never Lease a Credit Card Terminal

One of the most common and costly mistakes small business owners make is leasing a credit card terminal. What seems like a small monthly payment — typically $49 to $129 per month — adds up to a staggering amount over the life of a lease, often three to five times the cost of buying the equipment outright.

The True Cost of a Terminal Lease

A standard Clover Mini retails for approximately $599. A typical lease for the same device costs $79 per month on a 48-month non-cancellable lease. That is $3,792 for a $599 device — more than six times the purchase price. And at the end of the lease, you do not own the equipment.

Leases Are Non-Cancellable

Most terminal leases are classified as non-cancellable equipment leases. Even if you close your business, switch processors, or are dissatisfied with the equipment, you are legally obligated to continue making payments for the full term. Early buyout provisions are rare and expensive.

Better Alternatives

• Purchase outright: Buy your terminal for $200 to $800. It pays for itself within a few months compared to leasing.
• Free terminal placement: Many processors offer free terminal placement with a processing agreement. You use the equipment for free as long as you process with that provider.
• Refurbished equipment: Certified refurbished terminals work perfectly and cost 30-50% less than new.

Red Flags to Watch For

If a sales representative is pushing a terminal lease, treat it as a red flag. Reputable processors either sell equipment at fair prices or offer free placement programs. A lease is almost always designed to benefit the sales agent's commission, not your bottom line.

Mogil Partners never recommends terminal leases. We help our clients source equipment at the best possible price or through free placement programs. Contact us to learn more.